Friday, 13 August 2010

Stcok Trading Tips For Beginners.

Stock trading is a very good investment option and can make a lot of money by buying and selling stock.  It is just like trading any other items like buying when the price is low and sell when the price is high and make a profit out of it. But stock trading is not that much easy because it is affected with so many circumstances which may get a heavy loss. There are lot of things you should keep in mind when you try to invest in stock market. Let us check some of the.

Study the Market Well. This is the most important thing you must keep in mind that do not make big purchases without doing enough research and analysis. Discuss with experts and get help from all reliable sources. Stock market is a wide horizon with a plenty of information. Read many books, articles and news and collect enough details from all available sources. Try to Sign up for any expert e-course which teaches you all aspect of stock trading.

Get Experienced in Stock trading. Experience is the best teacher. It is correct in stock trading also. An experienced stock trader can foresee all ups and downs of stock market and also the trend of a particular stock. Try any stock trading demo account. Wall Street survivor does such demo account with virtual money which helps you to learn all aspect of stock trading. Their fantasy stock market is simply the best paper trading platform available. They help you learn about online trading stocks in an absolutely free stock market game. If you want to learn how to trade or practice your trading, Wall Street Survivor is the site for you. Try this game which is very much helpful or any other such demo account and learn and experience without spending any money.

Diversify your investment. In investment you must have heard that do not put your entire in one nest.  In a time of miss happenings all your efforts will be lost. So try to diversify your investments in stock market, Forex, Mutual funds or any other form of investment. Even in stock try to buy stocks from different sectors like banking, real estate, infrastructure etc. etc. and if you wish to purchase shares of one company buy half or it now and buy the other half after a few weeks. Suppose you wish to buy the shares of ABC for $ 25000. Buy for $ 12500 at present and other $ 12500 after a few weeks. We don’t know what would be price after a few weeks and if you purchase so the average cost will be less and the chances of getting profit is more or chances of loss is less.

Buy shares of strong companies. It is advisable that an average 80% of your stock portfolio must be with the shares of strong companies which lead with strong management and strong business dealings. Try some ratings like Motley Fool’s CAPS ratings to know the ideas about a company through the view point of investors

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